GXO

GXO is the largest pure-play contract logistics provider in the world, running 1,043 facilities and ~221 million square feet of technology-enabled warehousing for blue-chip customers under mostly long-term contracts. The business model is asset-light with high revenue visibility, and it rides two durable tailwinds: e-commerce/omnichannel fulfillment and the secular outsourcing of logistics. FY2025 revenue grew 13% to $13.2B — including $655M from the Wincanton acquisition plus new contract wins and pricing — and operating income rose 12.4% to $245M, so the core operation is expanding healthily.

The collapse in net income to $32M (EPS $0.28, down 75%) is below-the-operating-line and largely transitory. The MD&A bridge shows the culprits: interest expense up 29% to $133M (acquisition financing), $54M of transaction/integration costs, $27M of restructuring, $65M of regulatory/litigation expense, a $34M loss on a divestiture, and an outsized $68M tax charge. These are integration and one-off items tied to absorbing Wincanton (CMA-approved in June 2025, with a grocery-contract divestment to complete in 2026), not a deterioration in the underlying contract economics.